Medical payments coverage (MedPay): how it works

Adding MedPay to your auto insurance plan is usually a small change to your premium. The quickest way to see what it adds is to get a quote.

Medical payments (MedPay) insurance coverage is one of two coverages you can purchase on your auto insurance policy to cover the medical expenses you and your passengers incur in a car accident, whether the accident is your fault or not. The other is personal injury protection (PIP).

Auto medical coverage explained in plain terms:

How a claim usually goes:

Payment order between MedPay, health insurance and the other driver's coverage varies by policy and by state, so ask your carrier how it works on yours.

The medical payments portion of your auto insurance policy is a set limit per person that your car insurance company will pay for you and your passengers when you are injured in a car accident. Because it pays regardless of fault, you do not have to wait for the at-fault driver's insurance to accept the claim before your bills get paid.

MedPay can also apply when you are injured as a passenger in a vehicle, even if it's not your car. For example, suppose you are in an accident while you're in your friend's car as a passenger, and you have MedPay on your auto insurance policy.

Depending on the policies involved, your MedPay and your friend's MedPay may both come into play. And if you are a pedestrian hit by a vehicle, the MedPay on your own car insurance policy can help pay for your injuries.

Depending on the policy, here are some examples of the medical expenses that medical payments coverage can pay for:

For many drivers, yes. MedPay is worth a look if any of these fit:

It matters less if you already carry PIP with strong limits, or if your health plan has a low deductible. Either way, it is a coverage you choose, not one you are stuck with.

Not in the three states A-MAX serves. MedPay is optional in Texas, California and Arizona. What the law requires is liability coverage, which pays for injuries you cause to other people, not your own. See the minimums for Texas and California.

MedPay coverage only covers medical expenses for you and your passengers resulting from a car accident. Personal injury protection (PIP) coverage is a separate coverage that will cover your medical expenses as well as additional things such as:

• reimbursement for lost time at work due to the accident
• funeral expenses
• benefits to survivors of a driver or passenger involved in the accident
• coverage for things you cannot do because of the injuries you incurred in the accident, such as childcare, house cleaning, and transportation services

PIP coverage is required in some states called "no-fault states," whereas medical payment coverage is optional.

Bodily injury liability coverage is required in most states to cover the injuries you cause to another driver or their passengers in an accident that is your fault. This coverage does not pay for the injuries you or your passengers suffer in the accident.

Medical payments or personal injury protection are the coverages that pay for your injuries and those of your passengers. If the other driver is at fault and has no insurance, uninsured motorist coverage is the coverage that steps in.

Medical payment coverage is optional, and not every state offers it. Here is where the three states A-MAX writes in stand:

If you are buying a policy in another state, ask your carrier which of the two is available there.

Medical payment coverage is optional, but a good starting point is enough to cover the deductible on your health insurance. Many health insurance plans have steep deductibles that you must satisfy before your health insurance company will step in to pay for medical costs.

Having MedPay or PIP coverage can make a challenging situation easier if it can cover these expenses for you and your passengers. If you also carry collision and comprehensive, a full coverage quote can show MedPay limits side by side.